In a virtual event organised by the firm on Thursday, Agrawal advised not to bet against India despite the challenges.
“I have seen Sensex move from 100 to 52,000 now in the last 40 years…it doesn’t go in a straight line…there can be speed and slowdowns…India is an amazing opportunity,” said Agrawal.
He expects corporate profits to grow at 15 per cent on a compounded basis for Sensex to touch the 200,000-mark.
Talking about whether India can be the next China, Agrawal said most indicators are favourable for India which is the largest democracy, has a burgeoning middle class, is dominated by a high youth population and is moving forward towards a unified market.
Agrawal said Covid-19 has been a painful but temporary blip. Compared to last year, Covid-19 is now a known beast and vaccination marks the beginning of the end of the pandemic, he said.
“Fiscal response of the government is clearly visible … RBI is ensuring sufficient liquidity,” said Agrawal. “We expect a Kshaped recovery in some sectors and larger businesses will recover faster,” said Agrawal. He also said the abundance of capital in the market should ensure valuations remain elevated.